Business Atlas

How Enterprise Is Built
Sign In
Text size
100%
Theme
Business Models

Yield Management

Pricing and Revenue-Structure Models

Citation Formats

General Reference

APA Style

BibTeX

Yield management is a variable pricing business model based on understanding, anticipating, and influencing customer behavior in order to maximize revenue from a fixed, time-limited resource such as an airline seat, a hotel room, or advertising inventory. As a branch of revenue management focused specifically on inventory, it involves controlling that inventory strategically to sell the right product to the right customer at the right time for the right price, which can mean charging different prices to customers consuming an identical good or service. Robert Crandall, former chairman and chief executive of American Airlines, gave the practice its name and called it one of the most important technical developments in the history of transportation management.

Comments (0)
No comments yet. Be the first to share a thought.
Reader Challenges (0 open reader challenges)
No disputes yet. Spotted an error or a better source? Open the first one.

View At A Past Year

The atlas records no dated fact of its own for this entry, so there is no other year to choose.